Financial Analysis in Business: An Introduction

By the end of this module, learners will be able to: :

• Prepare a functional balance sheet
• Prepare interim management accounts
• Calculate financial ratios (profitability, liquidity, solvency, activity)

Introduction to and Analysis of Financial Statements

Introduction to General Accounting

• The role of general accounting within a business: The importance of accounting for management and decision-making.
• Structure of financial statements: Balance sheet, profit and loss account, and other financial statements.

Basic principles

• Expenses and income
• Assets and liabilities
• Equity

The limitations of general accounting in performance analysis

• Management accounting versus general accounting
• Limitations of general accounting

Financial analysis: a complementary tool to general accounting

• The main financial statements: Balance sheet, Profit and Loss Account, and their analytical interpretation.
• The importance of financial analysis

Analysis of the balance sheet and profit and loss account

• Analysis techniques: Methods for analysing the balance sheet and profit and loss account.
• Interpreting the results: What the figures reveal about the company’s financial health.

The cash flow statement

• Importance for financial analysis: Why cash flows are crucial.
• Reading the cash flow statement

Introduction to financial ratios

• Calculating key ratios: Profitability, solvency and liquidity ratios, etc.
• Interpreting ratios

Financial analysis tools and conclusion

Profitability analysis

• Profitability calculations: Gross margin, net margin, return on investment, etc.
• Interpretations

Solvency and liquidity analysis

• Solvency and liquidity calculations: Debt ratios, liquidity ratios, etc.
• Financial risk management: How to use these analyses to manage risks.
• The importance of solvency: Why solvency is crucial for business management.

Management tools based on financial analysis

• Using financial analysis for operational management: Budgeting, forecasting, management control.
• Practical examples: Real-world cases of using financial analysis in day-to-day management.

Forward-looking analysis and strategic planning

• Financial analysis as a forecasting tool: How to use financial data to anticipate future trends.
• Strategic planning: Using financial analysis to develop long-term strategies.

Conclusion, evaluation and key lessons learnt

• Certification of prior learning

• All audiences

This course is aimed at directors of micro-enterprises and SMEs, business founders or buyers, operational managers, department heads, sales representatives or account managers, as well as any employee wishing to acquire the basics of financial analysis.

It is also suitable for professionals who are not finance specialists but wish to better understand and interpret the company’s key financial documents (balance sheet, profit and loss account, key indicators).

It is primarily aimed at companies with fewer than 50 employees operating in sectors covered by AKTO. Funding is also available for companies with more than 50 employees. Please contact us.

• Technical prerequisites:

The ability to interpret figures and draw conclusions from them. No specific technical prerequisites are required. A general understanding of how a business operates and familiarity with the basics of management or accounting are an advantage and will facilitate learning.

4 to 8 trainees

• Fully classroom-based training

• Personalised course
• Group lessons

• Resource centre
• Room equipped with networked computer workstations
• Unmarked room with video projector

Assessment prior to the start of the training programme.

Taking into account participants’ satisfaction during and at the end of the training programme.

Interviews and remedial support with the educational advisor and/or the company liaison officer during the training programme. 

For participants with disabilities: possible adaptation of training and certification arrangements, support from the disability support officer.

Possibility of post-training support.

Education Nationale certified teachers, Bac +3 trainers with significant experience in adult training, professional speakers.

Trainers experienced in individualising learning.

In-course evaluations (ICE)

By the end of this course, participants will be able to read and understand a company’s main financial documents, identify key performance indicators and assess its overall financial position. This will enable them to interpret financial results more effectively, contribute to decision-making and communicate more effectively with the company’s financial stakeholders.

Access for people with disabilities

Teachers certified by the French Ministry of Education, trainers with a three-year higher education qualification and significant experience in adult education, and professional practitioners.

1st training session, we have no Quality indicators.